Rangers Year Of Shocks and Shares - Richard Wilson

[chilledbear 16]

http://www.heraldscotland.com/mobile/sport/football/rangers-year-of-shocks-and-shares.21235159?_=48d2760ce10f01b9e55f794073ddd08a81992353

 

It is 12 months since the consortium headed by Charles Green completed the purchase of the business and assets of Rangers Football Club plc.

 

There is still not enough detail of that transaction in the public domain, with the knowledge gaps leaving enough room for Craig Whyte, the club's former owner, to spread some doubt about its validity. As Green recently admitted, the extent of the relationship between the two men became damaging for him and the club.

 

The independent examination by Pinsent Masons and Deloitte has satisfied the Ibrox board that Whyte does not has any direct claim on the club or its assets. Green described this as "vindication", however there was never any chance of him returning to Ibrox. Of the original directors appointed last summer, only Brian Stockbridge remains in an unchanged position as financial director. Malcolm Murray has stepped down as chairman, although he remains on the board as a non-executive director, while Green resigned as chief executive last month and formally left as a director yesterday. Imran Ahmad, the commercial director, left the club last month. They lasted for a year, and supporters are not wholly in agreement about the merits of the regime, but Green and Ahmad remain significant figures.

 

Green is the largest single shareholder, with a 7.8% stake while Ahmad holds 3%. Under the terms of the initial public offering of shares last December, neither man can sell his stake until 12 months have elapsed, although there are ways around lock-in agreements.

 

Green previously told the Ibrox board that he intends to sell his shares to James and Sandy Easdale, the brothers who own McGill's buses, and also transfer the voting proxy to them. However, others have made their interest in Green's shares known and the combined stake with Ahmad's shares is enough to make a significant start to buying a controlling interest.

 

So who Green and Ahmad sell to is critical. Around 23% of the stock will also become available in June, when the lock-in period ends for the members of the original consortium fronted by Green. This includes Blue Pitch Holdings, who are represented by Chris Morgan. It was Blue Pitch Holdings who requested an extraordinary general meeting to be called, with four resolutions to be tabled: the removal of Murray and Philip non-executive director Cartmell, the from the board, and the appointments of James Easdale and Morgan himself. The egm is likely to take place at the end of this month.

 

Walter Smith succeeding Murray as chairman will bring some short-term stability to the board. The focus of the directors now will be in trying to revive the business strategy and address the vacant chief executive position. Four signings have been agreed already this summer, but not enough lessons have been learned from the generous contracts handed out last year.

 

Rangers were always likely to require additional funding, most likely on their return to the top flight to enable a title challenge to Celtic, but perhaps now sooner. The IPO raised £22 million, but around £7m to £8m is thought to be left. Rather than being used as seed funding for projects that would increase commercial revenue, and allow a return to the market seeking funds, the money will be used for the business unless there is another summer of significant season ticket sales.

 

The share price has doggedly held at around 55p, and potential buyers have been watching with interest. The balance being struck is between waiting for the share price to fall to a value closer to Rangers' true worth â?? around 40p â?? and waiting for the financial reality within the club to bite. Former director Dave King is monitoring events while at least one bidder from last summer has also not wholly departed the scene. Although now part of the club's history, Green and Ahmad will have a role to play in its future.

 

Their time at the club will generate mixed reviews. Green was a brilliant salesman, capable of a kind of gruff, bullish charm. He won the support over by recognising the issues that most irked them, namely the bid to take away the titles won during the years the club used the Employee Benefit Trust tax avoidance scheme, and the relationships with the Scottish Football Association and Scottish Premier League. When the consortium first bought the business and assets last summer, its members were dismissive of the title issue.

 

The IPO was a success, some of the ideas in the prospectus for building the club's commercial revenue streams were interesting, but the means to deliver them were not present. Now Smith must preside over a board that is still not united, while the financial predicament remains uncertain and potential new shareholders jostle for position. The coming weeks will determine how robust the club's future will be.

[Frankie 8,843]

Wilson claiming we have already spent £15m of the IPO monies!

 

On what exactly?

 

Still a variety of people wanting ownership but seems nothing will happen for the time being due to price.

[the gunslinger 3,366]

green refused to defend us in the title stripping tribunal.

 

point blank refused to have anything to do with it.

 

thank god for the rfff.

[the gunslinger 3,366]

Wilson claiming we have already spent £15m of the IPO monies!

 

On what exactly?

 

Still a variety of people wanting ownership but seems nothing will happen for the time being due to price.

 

hes actually saying we have spent around 40-45 million inside a year.

[Frankie 8,843]

hes actually saying we have spent around 40-45 million inside a year.

 

Indeed. Where has this money gone? A couple of new screens and the purchase (though still non-developed) Edmiston House?

[chilledbear 16]

Who is the other bidder from last summer?

[the gunslinger 3,366]

Indeed. Where has this money gone? A couple of new screens and the purchase (though still non-developed) Edmiston House?

 

stewards inquiry needed for sure.

[Stimpy 0]

hes actually saying we have spent around 40-45 million inside a year.

 

You able to breakdown exactly where all that cash has gone?

 

Obviously salaries and day to day running costs are factored in but £40+ was similar to our expenditure pre admin.

 

I can't see anything tangible for the amount spunked post IPO.

[chilledbear 16]

The way we are signing players, doesn't look as if balancing the books is a priority.

[Frankie 8,843]

Who is the other bidder from last summer?

 

Probably a few to be honest.